Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 8-K

____________________________________

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 23, 2025

____________________________________

OP BANCORP

(Exact name of registrant as specified in its charter)

____________________________________


California	001-38437	81-3114676
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1000 Wilshire Blvd, Suite 500, Los Angeles, CA		90017
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (213) 892-9999

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, No Par Value

OPBK

NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Item 2.02 Results of Operations and Financial Condition

On January 23, 2025, OP Bancorp, (the “Company”), the holding company of Open Bank, issued a press release announcing preliminary unaudited results for the fourth quarter and fiscal year ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Current Report set forth under this Item 2.02, including the exhibit hereto, shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as expressly stated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.


Exhibit Number						Exhibit Description
99.1						Press Release, dated January 2 3 , 202 5 , of OP Bancorp entitled “OP Bancorp Reports Net Income for 2024 Fourth Quarter of $5.0 Million and Diluted Earnings Per Share of $0.3 3 ”

99.2						Press Release, dated January 23 , 202 5 , of OP Bancorp entitled “OP Bancorp Declares Quarterly Cash Dividend of $0.12 Per Shar e ”

99.3						Earnings Presentation, 2024 Fourth Quarter

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	OP Bancorp

Date: January 23, 2025	By:	/s/ Christine Oh
		Christine Oh
		Executive Vice President and
		Chief Financial Officer

Exhibit 99.1

OP BANCORP REPORTS NET INCOME FOR 2024 FOURTH QUARTER

OF $5.0 MILLION AND DILUTED EARNINGS PER SHARE OF $0.33

2024 Fourth Quarter Highlights compared with 2024 Third Quarter:

•Financial Results:

◦Net income of $5.0 million, compared to $5.4 million

◦Diluted earnings per share of $0.33, compared to $0.36

◦Net interest income of $16.9 million, compared to $16.5 million

◦Net interest margin of 2.96%, compared to 2.95%

◦Provision for credit losses of $1.5 million, compared to $448 thousand

◦Total assets of $2.37 billion, compared to $2.39 billion

◦Gross loans of $1.96 billion, compared to $1.93 billion

◦Total deposits of $2.03 billion, compared to $2.06 billion

•Credit Quality:

◦Allowance for credit losses to gross loans of 1.27%, compared to 1.19%

◦Net charge-offs(1) to average gross loans(2) of 0.00%, compared to 0.01%

◦Loans past due 30-89 days to gross loans of 0.46%, compared to 0.53%

◦Nonperforming loans to gross loans of 0.40%, compared to 0.19%

◦Criticized loans(3) to gross loans of 1.00%, compared to 0.85%

•Capital Levels:

◦Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.35%

◦Book value per common share increased to $13.83, compared to $13.75

◦Paid quarterly cash dividend of $0.12 per share for the periods

___________________________________________________________

(1) Annualized.

(2) Includes loans held for sale.

(3) Includes Special Mention, Substandard, Doubtful, and Loss categories.

LOS ANGELES, January 23, 2025 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), today reported its financial results for the fourth quarter of 2024. Net income for the fourth quarter of 2024 was $5.0 million, or $0.33 per diluted common share, compared with $5.4 million, or $0.36 per diluted common share, for the third quarter of 2024, and $5.2 million, or $0.34 per diluted common share, for the fourth quarter of 2023.

Min Kim, President and Chief Executive Officer:

“We are continuing to experience the effects of uncertainty in the financial markets providing challenges in increasing customer deposits and lowering costs of deposit,” said Min Kim, President and Chief Executive. “We continue to see slightly elevated levels of classified loans, and we have responded prudently to managing these assets. We are also paying careful attention to those of our customers and employees who have been affected by the unprecedented wildfires in the Los Angeles basin, and we express our deepest condolences to all of those who have lost homes, businesses or jobs, or who have been affected by these disasters. We look forward to opportunities to assist in the recovery of the affected communities.”

SELECTED FINANCIAL HIGHLIGHTS



($ in thousands, except per share data)	As of and For the Quarter									% Change 4Q2024 vs.
	4Q2024			3Q2024			4Q2023			3Q2024		4Q2023
Selected Income Statement Data:
Net interest income	$	16,929		$	16,506		$	16,230		2.6	%	4.3	%
Provision for credit losses	1,547			448			630			245.3		145.6
Noninterest income	4,417			4,240			3,680			4.2		20.0
Noninterest expense	13,133			12,720			11,983			3.2		9.6
Income tax expense	1,695			2,142			2,125			(20.9)		(20.2)
Net income	4,971			5,436			5,172			(8.6)		(3.9)
Diluted earnings per share	0.33			0.36			0.34			(8.3)		(2.9)
Selected Balance Sheet Data:
Gross loans	$	1,956,852		$	1,931,007		$	1,765,845		1.3	%	10.8	%
Total deposits	2,027,285			2,064,603			1,807,558			(1.8)		12.2
Total assets	2,366,013			2,387,980			2,147,730			(0.9)		10.2
Average loans(1)	1,947,653			1,905,952			1,787,540			2.2		9.0
Average deposits	2,029,855			1,998,633			1,813,411			1.6		11.9
Credit Quality:
Nonperforming loans	$	7,820		$	3,620		$	6,082		116.0	%	28.6	%
Nonperforming loans to gross loans	0.40		%	0.19		%	0.34		%	0.21		0.06
Criticized loans(2) to gross loans	1.00			0.85			0.76			0.15		0.24
Net charge-offs(3) to average gross loans(1)	0.00			0.01			0.04			(0.01)		(0.04)
Allowance for credit losses to gross loans	1.27			1.19			1.25			0.08		0.02
Allowance for credit losses to nonperforming loans	317			634			362			(317.00)		(45.00)
Financial Ratios:
Return on average assets(3)	0.84		%	0.94		%	0.96		%	(0.10)	%	(0.12)	%
Return on average equity(3)	9.75			10.95			11.18			(1.20)		(1.43)
Net interest margin(3)	2.96			2.95			3.12			0.01		(0.16)
Efficiency ratio(4)	61.52			61.31			60.19			0.21		1.33
Common equity tier 1 capital ratio	11.35			11.57			12.52			(0.22)		(1.17)
Leverage ratio	9.27			9.30			9.57			(0.03)		(0.30)
Book value per common share	$	13.83		$	13.75		$	12.84		0.6		7.7

(1)Includes loans held for sale.

(2)Includes Special Mention, Substandard, Doubtful, and Loss categories.

(3)Annualized.

(4)Represents noninterest expense divided by the sum of net interest income and noninterest income.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income and Net Interest Margin



($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Interest Income
Interest income	$	35,051	$	35,299	$	31,783	(0.7)	%	10.3	%
Interest expense	18,122		18,793		15,553		(3.6)		16.5
Net interest income	$	16,929	$	16,506	$	16,230	2.6	%	4.3	%



($ in thousands)	For the Three Months Ended												Yield Change 4Q2024 vs.
	4Q2024				3Q2024				4Q2023
	Interest and Fees		Yield/Rate(1)		Interest and Fees		Yield/Rate(1)		Interest and Fees		Yield/Rate(1)		3Q2024		4Q2023
Interest-earning Assets:
Loans	$	31,729	6.49	%	$	31,885	6.66	%	$	28,914	6.43	%	(0.17)	%	0.06	%
Total interest-earning assets	35,051		6.12		35,299		6.30		31,783		6.10		(0.18)		0.02
Interest-bearing Liabilities:
Interest-bearing deposits	17,182		4.60		17,921		4.85		14,127		4.51		(0.25)		0.09
Total interest-bearing liabilities	18,122		4.58		18,793		4.82		15,553		4.53		(0.24)		0.05
Ratios:
Net interest income / interest rate spreads	16,929		1.54		16,506		1.48		16,230		1.57		0.06		(0.03)
Net interest margin			2.96				2.95				3.12		0.01		(0.16)
Total deposits / cost of deposits	17,182		3.37		17,921		3.57		14,127		3.09		(0.20)		0.28
Total funding liabilities / cost of funds	18,122		3.41		18,793		3.60		15,553		3.19		(0.19)		0.22

(1)Annualized.



($ in thousands)	For the Three Months Ended												Yield Change 4Q2024 vs.
	4Q2024				3Q2024				4Q2023
	Interest & Fees		Yield(1)		Interest & Fees		Yield(1)		Interest & Fees		Yield(1)		3Q2024		4Q2023
Loan Yield Component:
Contractual interest rate	$	31,406	6.42	%	$	31,182	6.52	%	$	28,596	6.36	%	(0.10)	%	0.06	%
Accretion of SBA loan discount(2)	813		0.17		918		0.19		960		0.21		(0.02)		(0.04)
Amortization of net deferred fees	(47)		(0.01)		23		—		(67)		-0.01		(0.01)		—
Amortization of premium	(363)		(0.07)		(487)		(0.10)		(423)		(0.09)		0.03		0.02
Net interest recognized on nonaccrual loans	(232)		(0.05)		(61)		(0.01)		(345)		(0.08)		(0.04)		0.03
Prepayment penalty income and other fees(3)	152		0.03		310		0.06		193		0.04		(0.03)		(0.01)
Yield on loans	$	31,729	6.49	%	$	31,885	6.66	%	$	28,914	6.43	%	(0.17)	%	0.06	%

(1)Annualized.

(2)Includes discount accretion from SBA loan payoffs of $329 thousand, $426 thousand and $413 thousand for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

(3)Includes prepayment penalty income of $45 thousand, $114 thousand and $43 thousand for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, from Commercial Real Estate (“CRE”) loans.

Fourth Quarter 2024 vs. Third Quarter 2024

Net interest income increased $423 thousand, or 2.6%, primarily due to lower interest expense on interest-bearing deposits, partially offset by lower interest income on loans as our deposit costs repriced faster than our loan yields following the Federal Reserve’s rate cuts from September 2024. Net interest margin was 2.96%, an increase of 1 basis point from 2.95%.

◦A $739 thousand decrease in interest expense on interest-bearing deposits was primarily due to a 25 basis point decrease in average cost.

◦A 156 thousand decrease in interest income on loans was primarily due to a 17 basis point decrease in average yield.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Net interest income increased $699 thousand, or 4.3%, as higher interest income from a $206.4 million, or 10.0%, increase in average earning assets (loans and interest-bearing deposits in other banks) surpassed higher interest expense from a $210.6 million, or 15.5%, increase in average interest-bearing liabilities (deposits and borrowings). Net interest margin, however, decreased 16 basis points to 2.96% from 3.12%, primarily due to a faster increase in average interest-bearing liabilities over average earnings assets and a faster repricing in deposits costs over loan yields.

◦A $2.8 million increase in interest income on loans was primarily due to a $160.1 million, or 9.0%, increase in average balance and a 6 basis point increase in average yield.

◦A $380 thousand increase in interest income on interest-bearing deposits in other banks was primarily due to a $41.7 million, or 53.1%, increase in average balance.

◦A $3.1 million increase in interest expense on interest-bearing deposits was primarily due to a $242.9 million, or 19.5%, increase in average balance and a 9 basis point increase in average cost.

◦A $486 thousand decrease in interest expense on borrowings was primarily due to a $32 million, or 27.1%, decrease in average balance and a 44 basis point decrease in average cost.

Provision for Credit Losses



($ in thousands)	For the Three Months Ended
	4Q2024		3Q2024		4Q2023
Provision for credit losses on loans	$	1,859	$	234	$	537
Provision for (reversal of) credit losses on off-balance sheet exposure	(312)		214		93
Total provision for credit losses	$	1,547	$	448	$	630

Fourth Quarter 2024 vs. Third Quarter 2024

The Company recorded $1.5 million in total provision for credit losses, an increase of $1.1 million, compared with $448 thousand, , reflecting an ongoing period of relatively elevated interest

rates and the related impacts on our customers and on the values of the collateral securing our loans. Provision for credit losses on loans increased $1.6 million and provision for credit losses on off-balance sheet exposure decreased $526 thousand.

Provision for credit losses on loans of $1.9 million was due to a $1.5 million increase in qualitative reserves, and a $810 thousand increase in specific reserves, partially offset by a $439 thousand decrease in general reserves.

◦The increase in qualitative reserves was primarily due to changes in the Bank’s asset quality metrics and a decrease in CRE value indices.

◦The increase in specific reserves was primarily due to two SBA relationships.

◦The decrease in general reserves was primarily due to a decrease in average life of home mortgage loans, partially offset by an increase from loan growth.

Reversal of credit losses on off-balance sheet exposure of $312 thousand was primarily due to a change in calculation method for revolving accounts using expected funding amount instead of unfunded commitment amount.

Fourth Quarter 2024 vs. Fourth Quarter 2023

The Company recorded $1.5 million in total provision for credit losses, an increase of $917 thousand, compared with $630 thousand. Provision for credit losses on loans increased $1.3 million and provision for credit losses on off-balance sheet exposure decreased $405 thousand.

Noninterest Income



($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Noninterest Income
Service charges on deposits	$	967	$	889	$	557	8.8	%	73.6	%
Loan servicing fees, net of amortization	858		693		540		23.8		58.9
Gain on sale of loans	2,197		2,088		1,996		5.2		10.1
Other income	395		570		587		(30.7)		(32.7)
Total noninterest income	$	4,417	$	4,240	$	3,680	4.2	%	20.0	%

Fourth Quarter 2024 vs. Third Quarter 2024

Noninterest income increased $177 thousand, or 4.2%, primarily due to higher loan servicing fees and gain on sale of loans, partially offset by lower other income.

◦Loan servicing fees, net of amortization, were $858 thousand, an increase of $165 thousand from $693 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.

◦Gain on sale of loans was $2.2 million, an increase of $109 thousand from $2.1 million, primarily due to a higher average premium on sales. The Bank sold $34.7 million in SBA loans at an average premium rate of 7.82%, compared to the sale of $35.6 million at an average premium rate of 7.30%.

◦Other income was $395 thousand, a decrease of $175 thousand from $570 thousand, primarily due to an increase in unrealized loss of CRA-qualified mutual funds driven by market interest rate changes.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Noninterest income increased $737 thousand, or 20.0%, primarily due to higher service charges on deposits, loan servicing fees and gain on sale of loans, offset by lower other income.

◦Service charges on deposits were $967 thousand, an increase of $410 thousand from $557 thousand, primarily due to an increase in deposit analysis fees from an increase in the number of analysis accounts.

◦Loan servicing fees were $858 thousand, an increase of $318 thousand from $540 thousand, primarily due to a decrease in servicing fee amortization driven by lower loan payoffs in loan servicing portfolio.

◦Gain on sale of loans was $2.2 million, an increase of $201 thousand from $2.0 million, primarily due to a higher average premium rate, partially offset by lower sold amount. The Bank sold $34.7 million in SBA loans at an average premium rate of 7.82%, compared to the sale of $40.1 million at an average premium rate of 5.99%.

◦Other income was $395 thousand, a decrease of $192 thousand from $587 thousand, primarily due to an increase in unrealized loss of CRA-qualified mutual fund driven by market interest rate changes.

Noninterest Expense



($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Noninterest Expense
Salaries and employee benefits	$	8,277	$	8,031	$	7,646	3.1	%	8.3	%
Occupancy and equipment	1,682		1,676		1,616		0.4		4.1
Data processing and communication	594		634		644		(6.3)		(7.8)
Professional fees	388		346		391		12.1		(0.8)
FDIC insurance and regulatory assessments	529		391		237		35.3		123.2
Promotion and advertising	82		151		86		(45.7)		(4.7)
Directors’ fees	151		154		145		(1.9)		4.1
Foundation donation and other contributions	480		549		524		(12.6)		(8.4)
Other expenses	950		788		694		20.6		36.9
Total noninterest expense	$	13,133	$	12,720	$	11,983	3.2	%	9.6	%

Fourth Quarter 2024 vs. Third Quarter 2024

Noninterest expense increased $413 thousand, or 3.2%, primarily due to higher salaries and employee benefits, other expenses, and FDIC insurance and regulatory assessments.

◦Salaries and employee benefits increased $246 thousand, primarily due to increases in employee incentive accruals.

◦Other expenses increased $162 thousand, primarily due to an increase in customer services expenses related to the increase in the number of analysis accounts.

◦FDIC insurance and regulatory assessments increased $138 thousand, primarily due to year end accrual adjustments.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Noninterest expense increased $1.2 million, or 9.6%, primarily due to higher salaries and employee benefits, FDIC insurance and regulatory assessments, and other expenses.

◦Salaries and employee benefits increased $631 thousand, primarily due to increases in salaries and employee benefits as our number of employees increased to 231 from 222.

◦FDIC insurance and regulatory assessments increased $292 thousand, primarily due to increases in assessment base and rate from our balance sheet growth and increased reliance on brokered deposits.

◦Other expenses increased $256 thousand, primarily due to an increase in customer services expenses related to the increase in the number of analysis accounts.

Income Tax Expense

Fourth Quarter 2024 vs. Third Quarter 2024

Income tax expense was $1.7 million, or an effective tax rate of 25.4%, compared to income tax expense of $2.1 million, or an effective tax rate of 28.3%. The decrease in effective tax rate was primarily due to year-end provision adjustments for additional tax benefits from low income housing tax credit fund investments, and adjustments for differences between the prior year tax provision and the final tax returns that were applied in the quarter.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Income tax expense was $1.7 million, resulting in an effective tax rate of 25.4%, compared to income tax expense of $2.1 million, resulting in an effective tax rate of 29.1%. The decrease in effective tax rate was primarily due to year-end provision adjustments for additional tax benefits from low income housing tax credit fund investments, and adjustments for differences between the prior year tax provision and the final tax returns that were applied in the quarter.

BALANCE SHEET HIGHLIGHTS

Loans



($ in thousands)	As of						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
CRE loans	$	980,247	$	966,472	$	885,585	1.4	%	10.7	%
SBA loans	253,710		252,379		239,692		0.5		5.8
C&I loans	213,097		212,476		120,970		0.3		76.2
Home mortgage loans	509,524		499,666		518,024		2.0		(1.6)
Consumer & other loans	274		14		1,574		1,857.1		(82.6)
Gross loans	$	1,956,852	$	1,931,007	$	1,765,845	1.3	%	10.8	%

The following table presents new loan originations based on loan commitment amounts for the periods indicated:



($ in thousands)	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
CRE loans	$	64,827	$	68,525	$	15,885	(5.4)	%	308.1	%
SBA loans	36,810		46,302		51,855		(20.5)		(29.0)
C&I loans	7,783		27,771		15,270		(72.0)		(49.0)
Home mortgage loans	17,937		10,105		12,417		77.5		44.5
Consumer & other loans	—		—		1,500		—		(100.0)
Gross loans	$	127,357	$	152,703	$	96,927	(16.6)	%	31.4	%

The following table presents changes in gross loans by loan activity for the periods indicated:



($ in thousands)	For the Three Months Ended
	4Q2024		3Q2024		4Q2023
Loan Activities:
Gross loans, beginning	$	1,931,007	$	1,870,106	$	1,759,525
New originations	127,357		152,703		96,927
Purchases	—		862		2,371
Sales	(34,715)		(35,576)		(40,122)
Payoffs	(48,456)		(29,642)		(23,590)
Paydowns	(21,919)		(25,772)		(27,471)
Decrease (increase) in loans held for sale	3,578		(1,674)		(1,795)
Total	25,845		60,901		6,320
Gross loans, ending	$	1,956,852	$	1,931,007	$	1,765,845

As of December 31, 2024 vs. September 30, 2024

Gross loans were $1.96 billion as of December 31, 2024, up $25.8 million from September 30, 2024, primarily due to new loan originations, partially offset by loan sales, payoffs and paydowns. New loan originations, loan sales, and loan payoffs and paydowns were $127.4 million, $34.7 million, and $70.4 million, respectively, for the fourth quarter of 2024, compared with $152.7 million, $35.6 million, and $55.4 million, respectively, for the third quarter of 2024.

As of December 31, 2024 vs. December 31, 2023

Gross loans were $1.96 billion as of December 31, 2024, up $191.0 million, from December 31, 2023, primarily due to an increase in new loan originations of $502.8 million, partially offset by loan sales of $127.2 million and loan payoffs and paydowns of $188.2 million.

The following table presents the composition of gross loans by interest rate type accompanied with the weighted average contractual rates as of the periods indicated:



($ in thousands)	As of
	4Q2024				3Q2024				4Q2023
	%		Rate		%		Rate		%		Rate
Fixed rate	33.2	%	5.44	%	35.7	%	5.42	%	35.1	%	5.07	%
Hybrid rate	37.0		5.66		34.7		5.60		33.9		5.15
Variable rate	29.8		8.47		29.6		8.94		31.0		9.15
Gross loans	100.0	%	6.43	%	100.0	%	6.52	%	100.0	%	6.36	%

The following table presents the maturity of gross loans by interest rate type accompanied with the weighted average contractual rates for the periods indicated:



($ in thousands)	As of December 31, 2024
	Within One Year				One Year Through Five Years				After Five Years				Total
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Fixed rate	$	164,941	5.86	%	$	276,216	5.45	%	$	207,774	5.08	%	$	648,931	5.44	%
Hybrid rate	—		—		210,510		4.44		513,438		6.17		723,948		5.66
Variable rate	107,591		7.80		137,220		7.98		339,162		8.88		583,973		8.47
Gross loans	$	272,532	6.63	%	$	623,946	5.67	%	$	1,060,374	6.82	%	$	1,956,852	6.43	%

Allowance for Credit Losses

The following table presents allowance for credit losses and provision for credit losses as of and for the periods presented:



($ in thousands)	As of and For the Three Months Ended						Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Allowance for credit losses on loans, beginning	$	22,960	$	22,760	$	21,617	$	200	$	1,343
Provision for credit losses	1,859		234		537		1,625		1,322
Gross charge-offs	(29)		(40)		(236)		11		207
Gross recoveries	6		6		75		—		(69)
Net charge-offs	(23)		(34)		(161)		11		138
Allowance for credit losses on loans, ending	$	24,796	$	22,960	$	21,993	$	1,836	$	2,803

Allowance for credit losses on off-balance sheet exposure, beginning	$	672	$	458	$	423	$	214	$	249
Provision for (reversal of) credit losses	(312)		214		93		(526)		(405)
Allowance for credit losses on off-balance sheet exposure, ending	$	360	$	672	$	516	$	(312)	$	(156)

Asset Quality



($ in thousands)	As of and For the Three Months Ended									Change 4Q2024 vs.
	4Q2024			3Q2024			4Q2023			3Q2024		4Q2023
Loans 30-89 days past due and still accruing	$	8,964		$	10,306		$	9,607		(13.0)	%	(6.7)	%
As a % of gross loans	0.46		%	0.53		%	0.54		%	(0.07)		(0.08)

Nonperforming loans(1)	$	7,820		$	3,620		$	6,082		116.0	%	28.6	%
Nonperforming assets(1)	9,057			4,857			6,082			86.5		48.9
Nonperforming loans to gross loans	0.40		%	0.19		%	0.34		%	0.21		0.06
Nonperforming assets to total assets	0.38			0.20			0.28			0.18		0.10

Criticized loans(1)(2)	$	19,570		$	16,500		$	13,349		18.6	%	46.6	%
Criticized loans to gross loans	1.00		%	0.85		%	0.76		%	0.15		0.24

Allowance for credit losses ratios:
As a % of gross loans	1.27		%	1.19		%	1.25		%	0.08	%	0.02	%
As a % of nonperforming loans	317			634			362			(317)		(45)
As a % of nonperforming assets	274			473			362			(199)		(88)
As a % of criticized loans	127			139			165			(12)		(38)
Net charge-offs(3) to average gross loans(4)	0.00			0.01			0.04			(0.01)		(0.04)

(1)Excludes the guaranteed portion of SBA & USDA loans that are in liquidation totaling $16.3 million, $11.1 million and $2.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

(2)Consists of Special Mention, Substandard, Doubtful and Loss categories.

(3)Annualized.

(4)Includes loans held for sale.

Overall, the Bank continued to maintain low levels of nonperforming loans and net charge-offs. Our allowance remained strong with an allowance to gross loans ratio of 1.27%.

◦Loans 30-89 days past due and still accruing were $9.0 million or 0.46% of gross loans as of December 31, 2024, compared with $10.3 million or 0.53% as of September 30, 2024.

◦Nonperforming loans were $7.8 million or 0.40% of gross loans as of December 31, 2024, compared with $3.6 million or 0.19% as of September 30, 2024. The increase was mainly driven by three SBA relationships: one isolated fire damage to a hotel property in Tucson, AZ, which the Bank is working with the borrower through a temporary deferment during the repairs, and two separate relationships in apparel business, which the Bank is in the process of liquidating and in negotiation to sell the note to the tenant.

◦Nonperforming assets were $9.1 million or 0.38% of total assets as of December 31, 2024, compared with $4.9 million or 0.20% as of September 30, 2024. OREO remained the same at $1.2 million as of December 31, 2024 and September 30, 2024, which is secured by a mix-use property in Los Angeles Koreatown with 90% guaranteed by SBA.

◦Criticized loans were $19.6 million or 1.00% of gross loans as of December 31, 2024, compared with $16.5 million or 0.85% as of September 30, 2024.

◦Net charge-offs were $23 thousand or 0.00% of average loans in the fourth quarter of 2024, compared to net charge-offs of $34 thousand, or 0.01% of average loans in the third quarter

of 2024 and net charge-offs of $161 thousand, or 0.04% of average loans in the fourth quarter of 2023.

Los Angeles Wildfires Impact

The Company’s overall exposure from the Los Angeles wildfires is limited to $23.5 million (or 1.3% of net loans) based on zip code. Only three borrowers suffered direct impact from the wildfires, totaling $6.3 million in outstanding principal balance. Of the three borrowers, only two borrowers with combined outstanding principal balance of $2.2 million may require temporary loan payment adjustments. The Company will continue to monitor the loans to timely assess both direct and indirect impacts to the Company’s asset quality.

Deposits



($ in thousands)	As of												% Change 4Q2024 vs.
	4Q2024				3Q2024				4Q2023
	Amount		%		Amount		%		Amount		%		3Q2024		4Q2023
Noninterest-bearing deposits	$	504,928	24.9	%	$	561,801	27.2	%	$	522,751	28.9	%	(10.1)	%	(3.4)	%
Money market deposits and others	329,095		16.2		343,188		16.6		399,018		22.1		(4.1)		(17.5)
Time deposits	1,193,262		58.9		1,159,614		56.2		885,789		49.0		2.9		34.7
Total deposits	$	2,027,285	100.0	%	$	2,064,603	100.0	%	$	1,807,558	100.0	%	(1.8)	%	12.2	%

Estimated uninsured deposits	$	961,687	47.4	%	$	946,406	45.8	%	$	1,156,270	64.0	%	1.6	%	(16.8)	%

As of December 31, 2024 vs. September 30, 2024

Total deposits were $2.03 billion as of December 31, 2024, reflecting a decrease of $37.3 million or 1.8% from September 30, 2024, primarily due to decreases of $56.9 million in noninterest-bearing deposits and $14.1 million in money market deposits, partially offset by an increase of $33.6 million in time deposits. Customers’ preference for high-rate deposit products continued to drive the increase in time deposits over money market deposits. The decrease in noninterest-bearing deposits was primarily driven by a significant downward shift in market expectation on the Federal Reserve’s future rate cut trajectory and an uncertainty of economic and business outlook. Average balance of noninterest-bearing deposits, however, increased $15.4 million or 2.9% to $543.5 million from $528.1 million continuing the upward trend started from the beginning of 2024.

As of December 31, 2024 vs. December 31, 2023

Total deposits were $2.03 billion as of December 31, 2024, an increase of $219.7 million from December 31, 2023, primarily driven by a $307.5 million increase in time deposits, offset by decreases of $69.9 million in money market deposits and $17.8 million in noninterest-bearing deposits. Noninterest-bearing deposits, as a percentage of total deposits, decreased to 24.9% from 28.9%. The composition shift to time deposits was primarily due to customers’ preference for high-rate deposit products driven by market rate increases as a result of the Federal Reserve’s rate increases.

The following table sets forth the maturity of time deposits as of December 31, 2024:



	As of December 31, 2024
($ in thousands)	Within Three Months			Three to Six Months			Six to Nine Months			Nine to Twelve Months			After Twelve Months			Total
Time deposits (greater than $250)	$	206,324		$	149,639		$	78,397		$	131,002		$	451		$	565,813
Time deposits ($250 or less)	202,931			123,639			156,542			124,766			19,571			627,449
Total time deposits	$	409,255		$	273,278		$	234,939		$	255,768		$	20,022		$	1,193,262
Weighted average rate	4.89		%	4.86		%	4.77		%	4.25		%	3.98		%	4.71		%

OTHER HIGHLIGHTS

Liquidity

The Company maintains ample access to liquidity, including highly liquid assets on our balance sheet and available unused borrowings from other financial institutions. The following table presents the Company's liquid assets and available borrowings as of dates presented:



($ in thousands)	4Q2024			3Q2024			4Q2023
Liquidity Assets:
Cash and cash equivalents	$	134,943		$	166,756		$	91,216
Available-for-sale debt securities	185,909			199,373			194,250
Liquid assets	$	320,852		$	366,129		$	285,466
Liquid assets to total assets	13.6		%	15.3		%	13.3		%

Available Borrowings:
Federal Home Loan Bank—San Francisco	$	401,900		$	397,617		$	363,615
Federal Reserve Bank	215,115			207,782			182,989
Pacific Coast Bankers Bank	50,000			50,000			50,000
Zions Bank	25,000			25,000			25,000
First Horizon Bank	25,000			25,000			25,000
Total available borrowings	$	717,015		$	705,399		$	646,604
Total available borrowings to total assets	30.3		%	29.5		%	30.1		%

Liquid assets and available borrowings to total deposits	51.2		%	51.9		%	51.6		%

Capital and Capital Ratios

On January 23, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The cash dividend is payable on or about February 20, 2025 to all shareholders of record as of the close of business on February 6, 2025. The payment of the dividend is based primarily on dividends from the Bank to the Company, and future dividends will depend on the

Board’s assessment of the availability of capital levels to support the ongoing operating capital needs of both the Company and the Bank.

The Company did not repurchase share of its common stock during the fourth quarter of 2024. Since the announcement of the stock repurchase program in August 2023, the Company repurchased a total of 428,628 shares of its common stock at an average repurchase price of $9.37 per share through December 31, 2024.



	OP Bancorp(1)		Open Bank		Minimum Well Capitalized Ratio		Minimum Capital Ratio+ Conservation Buffer(2)
Risk-Based Capital Ratios:
Total risk-based capital ratio	12.60	%	12.50	%	10.00	%	10.50	%
Tier 1 risk-based capital ratio	11.35		11.25		8.00		8.50
Common equity tier 1 ratio	11.35		11.25		6.50		7.00
Leverage ratio	9.27		9.20		5.00		4.00

(1)The capital requirements are only applicable to the Bank, and the Company's ratios are included for comparison purpose.

(2)An additional 2.5% capital conservation buffer above the minimum capital ratios are required in order to avoid limitations on distributions, including dividend payments and certain discretionary bonuses to executive officers.



OP Bancorp										Change 4Q2024 vs.
	4Q2024			3Q2024			4Q2023			3Q2024		4Q2023
Risk-Based Capital Ratios:
Total risk-based capital ratio	12.60		%	12.79		%	13.77		%	(0.19)	%	(1.17)	%
Tier 1 risk-based capital ratio	11.35			11.57			12.52			(0.22)		(1.17)
Common equity tier 1 ratio	11.35			11.57			12.52			(0.22)		(1.17)
Leverage ratio	9.27			9.30			9.57			(0.03)		(0.30)
Risk-weighted Assets ($ in thousands)	$	1,941,549		$	1,876,698		$	1,667,067		3.46		16.46

ABOUT OP BANCORP

OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates eleven full-service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; our ability to protect and to use our trademarks and related intellectual property; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events (including but not limited to the above-described wildfires affecting the Los Angeles Metropolitan Area), any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings with the Securities and Exchange Commission.

Contact

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

Christine.oh@myopenbank.com

CONSOLIDATED BALANCE SHEETS (unaudited)



($ in thousands)	As of						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Assets
Cash and due from banks	$	12,268	$	24,519	$	16,948	(50.0)	%	(27.6)	%
Interest-bearing deposits in other banks	122,675		142,237		74,268		(13.8)		65.2
Cash and cash equivalents	134,943		166,756		91,216		(19.1)		47.9
Available-for-sale debt securities, at fair value	185,909		199,373		194,250		(6.8)		(4.3)
Other investments	16,437		16,520		16,276		(0.5)		1.0
Loans held for sale	4,581		8,160		1,795		(43.9)		155.2
CRE loans	980,247		966,472		885,585		1.4		10.7
SBA loans	253,710		252,379		239,692		0.5		5.8
C&I loans	213,097		212,476		120,970		0.3		76.2
Home mortgage loans	509,524		499,666		518,024		2.0		(1.6)
Consumer loans	274		14		1,574		n/m		(82.6)
Gross loans receivable	1,956,852		1,931,007		1,765,845		1.3		10.8
Allowance for credit losses	(24,796)		(22,960)		(21,993)		8.0		12.7
Net loans receivable	1,932,056		1,908,047		1,743,852		1.3		10.8
Premises and equipment, net	5,449		4,961		5,248		9.8		3.8
Accrued interest receivable, net	9,188		9,479		8,259		(3.1)		11.2
Servicing assets	10,834		10,877		11,741		(0.4)		(7.7)
Company owned life insurance	22,912		22,739		22,233		0.8		3.1
Deferred tax assets, net	14,893		12,288		13,309		21.2		11.9
Other real estate owned	1,237		1,237		—		—		n/m
Operating right-of-use assets	7,415		7,870		8,497		(5.8)		(12.7)
Other assets	20,159		19,673		31,054		2.5		(35.1)
Total assets	$	2,366,013	$	2,387,980	$	2,147,730	(0.9)	%	10.2	%
Liabilities and Shareholders' Equity
Liabilities:
Noninterest-bearing	$	504,928	$	561,801	$	522,751	(10.1)	%	(3.4)	%
Money market and others	329,095		343,188		399,018		(4.1)		(17.5)
Time deposits greater than $250	565,813		564,547		433,892		0.2		30.4
Other time deposits	627,449		595,067		451,897		5.4		38.8
Total deposits	2,027,285		2,064,603		1,807,558		(1.8)		12.2
Federal Home Loan Bank advances	95,000		75,000		105,000		26.7		(9.5)
Accrued interest payable	16,067		19,483		12,628		(17.5)		27.2
Operating lease liabilities	7,857		8,417		9,341		(6.7)		(15.9)
Other liabilities	14,811		16,874		20,577		(12.2)		(28.0)
Total liabilities	2,161,020		2,184,377		1,955,104		(1.1)		10.5
Shareholders' equity:
Common stock	73,697		73,697		76,280		—		(3.4)
Additional paid-in capital	11,928		11,713		10,942		1.8		9.0
Retained earnings	134,781		131,588		120,855		2.4		11.5
Accumulated other comprehensive loss	(15,413)		(13,395)		(15,451)		15.1		(0.2)
Total shareholders’ equity	204,993		203,603		192,626		0.7		6.4
Total liabilities and shareholders' equity	$	2,366,013	$	2,387,980	$	2,147,730	(0.9)	%	10.2	%

CONSOLIDATED STATEMENTS OF INCOME (unaudited)



($ in thousands, except share and per share data)	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Interest income
Interest and fees on loans	$	31,729	$	31,885	$	28,914	(0.5)	%	9.7	%
Interest on available-for-sale debt securities	1,551		1,626		1,484		(4.6)		4.5
Other interest income	1,771		1,788		1,385		(1.0)		27.9
Total interest income	35,051		35,299		31,783		(0.7)		10.3
Interest expense
Interest on deposits	17,182		17,921		14,127		(4.1)		21.6
Interest on borrowings	940		872		1,426		7.8		(34.1)	%
Total interest expense	18,122		18,793		15,553		(3.6)		16.5
Net interest income	16,929		16,506		16,230		2.6		4.3
Provision for credit losses	1,547		448		630		245.3		145.6
Net interest income after provision for credit losses	15,382		16,058		15,600		(4.2)		(1.4)
Noninterest income
Service charges on deposits	967		889		557		8.8		73.6
Loan servicing fees, net of amortization	858		693		540		23.8		58.9
Gain on sale of loans	2,197		2,088		1,996		5.2		10.1
Other income	395		570		587		(30.7)		(32.7)
Total noninterest income	4,417		4,240		3,680		4.2		20.0
Noninterest expense
Salaries and employee benefits	8,277		8,031		7,646		3.1		8.3
Occupancy and equipment	1,682		1,676		1,616		0.4		4.1
Data processing and communication	594		634		644		(6.3)		(7.8)
Professional fees	388		346		391		12.1		(0.8)
FDIC insurance and regulatory assessments	529		391		237		35.3		123.2
Promotion and advertising	82		151		86		(45.7)		(4.7)
Directors’ fees	151		154		145		(1.9)		4.1
Foundation donation and other contributions	480		549		524		(12.6)		(8.4)
Other expenses	950		788		694		20.6		36.9
Total noninterest expense	13,133		12,720		11,983		3.2		9.6
Income before income tax expense	6,666		7,578		7,297		(12.0)		(8.6)
Income tax expense	1,695		2,142		2,125		(20.9)		(20.2)
Net income	$	4,971	$	5,436	$	5,172	(8.6)	%	(3.9)	%

Book value per share	$	13.83	$	13.75	$	12.84	0.6	%	7.7	%
Earnings per share - basic	0.33		0.36		0.34		(8.3)		(2.9)
Earnings per share - diluted	0.33		0.36		0.34		(8.3)		(2.9)

Shares of common stock outstanding, at period end	14,819,866		14,811,671		15,000,436		0.1	%	(1.2)	%
Weighted average shares:
- Basic	14,816,416		14,812,118		15,027,110		—	%	(1.4)	%
- Diluted	14,816,416		14,812,118		15,034,822		—		(1.5)

KEY RATIOS



	For the Three Months Ended						% Change 4Q2024 vs.
	4Q2024		3Q2024		4Q2023		3Q2024		4Q2023
Return on average assets (ROA)(1)	0.84	%	0.94	%	0.96	%	(0.1)	%	(0.1)	%
Return on average equity (ROE)(1)	9.75		10.95		11.18		(1.2)		(1.4)
Net interest margin(1)	2.96		2.95		3.12		—		(0.2)
Efficiency ratio	61.52		61.31		60.19		0.2		1.3

Total risk-based capital ratio	12.60	%	12.79	%	13.77	%	(0.2)	%	(1.2)	%
Tier 1 risk-based capital ratio	11.35		11.57		12.52		(0.2)		(1.2)
Common equity tier 1 ratio	11.35		11.57		12.52		(0.2)		(1.2)
Leverage ratio	9.27		9.30		9.57		—		(0.3)

(1)Annualized.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)



($ in thousands, except share and per share data)	For the Twelve Months Ended
	4Q2024		4Q2023		% Change
Interest income
Interest and fees on loans	$	124,361	$	110,463	12.6	%
Interest on available-for-sale debt securities	6,227		6,131		1.6
Other interest income	7,032		5,071		38.7
Total interest income	137,620		121,665		13.1
Interest expense
Interest on deposits	68,121		49,435		37.8
Interest on borrowings	3,891		3,543		9.8
Total interest expense	72,012		52,978		35.9
Net interest income	65,608		68,687		(4.5)
Provision for credit losses	2,757		1,651		67.0
Net interest income after provision for credit losses	62,851		67,036		(6.2)
Noninterest income
Service charges on deposits	3,261		2,123		53.6	%
Loan servicing fees, net of amortization	2,898		2,449		18.3
Gain on sale of loans	8,313		7,843		6.0
Other income	1,955		1,766		10.7
Total noninterest income	16,427		14,181		15.8
Noninterest expense
Salaries and employee benefits	31,717		29,593		7.2
Occupancy and equipment	6,673		6,490		2.8
Data processing and communication	2,245		2,109		6.4
Professional fees	1,535		1,571		(2.3)
FDIC insurance and regulatory assessments	1,672		1,457		14.8
Promotion and advertising	533		614		(13.2)
Directors’ fees	640		680		(5.9)
Foundation donation and other contributions	2,108		2,400		(12.2)
Other expenses	3,076		2,812		9.4
Total noninterest expense	50,199		47,726		5.2
Income before income tax expense	29,079		33,491		(13.2)
Income tax expense	8,010		9,573		(16.3)
Net income	$	21,069	$	23,918	(11.9)	%

Book value per share	$	13.83	$	12.84	7.7	%
Earnings per share - basic	1.39		1.55		(10.3)
Earnings per share - diluted	1.39		1.55		(10.3)

Shares of common stock outstanding, at period end	14,819,866		15,000,436		(1.2)	%
Weighted average shares:
- Basic	14,871,876		15,149,597		(1.8)	%
- Diluted	14,871,876		15,158,857		(1.9)

KEY RATIOS



	For the Twelve Months Ended
	4Q2024		4Q2023		% Change
Return on average assets (ROA)	0.92	%	1.13	%	(0.2)	%
Return on average equity (ROE)	10.68		13.05		(2.4)
Net interest margin	2.99		3.37		(0.4)
Efficiency ratio	61.19		57.59		3.6

Total risk-based capital ratio	12.60	%	13.77	%	(1.2)	%
Tier 1 risk-based capital ratio	11.35		12.52		(1.2)
Common equity tier 1 ratio	11.35		12.52		(1.2)
Leverage ratio	9.27		9.57		(0.3)

ASSET QUALITY



($ in thousands)	As of and For the Three Months Ended
	4Q2024			3Q2024			4Q2023
Nonaccrual loans(1)	$	7,820		$	3,620		$	6,082
Loans 90 days or more past due, accruing	—			—			—

Nonperforming loans	7,820			3,620			6,082
OREO	1,237			1,237			—
Nonperforming assets	$	9,057		$	4,857		$	6,082

Criticized loans by risk categories:
Special mention loans	$	6,309		$	4,540		$	1,428
Classified loans(1)(2)	13,261			11,960			11,921
Total criticized loans	$	19,570		$	16,500		$	13,349

Criticized loans by loan type:
CRE loans	$	9,042		$	5,249		$	4,995
SBA loans	10,128			10,144			5,864
C&I loans	400			1,107			—
Home mortgage loans	—			—			2,490
Total criticized loans	$	19,570		$	16,500		$	13,349

Nonperforming loans / gross loans	0.40		%	0.19		%	0.34		%
Nonperforming assets / gross loans plus OREO	0.46			0.25			0.34
Nonperforming assets / total assets	0.38			0.20			0.28
Classified loans / gross loans	0.68			0.62			0.68
Criticized loans / gross loans	1.00			0.85			0.76

Allowance for credit losses ratios:
As a % of gross loans	1.27		%	1.19		%	1.25		%
As a % of nonperforming loans	317			634			362
As a % of nonperforming assets	274			473			362
As a % of classified loans	187			192			184
As a % of criticized loans	127			139			165

Net charge-offs	$	23		$	34		$	161
Net charge-offs(3) to average gross loans(4)	0.00		%	0.01		%	0.04		%

(2)Consists of Substandard, Doubtful and Loss categories.

(3)Annualized.

(4)Includes loans held for sale.



($ in thousands)	4Q2024		3Q2024		4Q2023
Accruing delinquent loans 30-89 days past due
30-59 days	$	3,159	$	4,095	$	5,945
60-89 days	5,805		6,211		3,662
Total	$	8,964	$	10,306	$	9,607

AVERAGE BALANCE SHEET, INTEREST AND YIELD/RATE ANALYSIS



	For the Three Months Ended
	4Q2024						3Q2024						4Q2023
($ in thousands)	Average Balance		Interest and Fees		Yield/ Rate(1)		Average Balance		Interest and Fees		Yield/ Rate(1)		Average Balance		Interest and Fees		Yield/ Rate(1)
Interest-earning assets:
Interest-bearing deposits in other banks	$	120,170	$	1,456	4.74	%	$	109,003	$	1,474	5.29	%	$	78,496	$	1,076	5.36	%
Federal funds sold and other investments	16,478		315		7.63		16,432		314		7.65		16,115		309		7.66
Available-for-sale debt securities, at fair value	193,738		1,551		3.20		199,211		1,626		3.26		189,462		1,484		3.13
CRE loans	960,639		14,653		6.07		944,818		14,759		6.21		892,092		13,104		5.83
SBA loans	269,842		6,542		9.65		270,282		7,107		10.46		255,692		7,055		10.95
C&I loans	217,816		4,086		7.46		187,163		3,642		7.74		122,950		2,416		7.80
Home mortgage loans	499,151		6,441		5.16		503,148		6,364		5.06		515,840		6,315		4.90
Consumer loans	205		7		13.55		541		13		9.37		966		24		9.92
Loans(2)	1,947,653		31,729		6.49		1,905,952		31,885		6.66		1,787,540		28,914		6.43
Total interest-earning assets	2,278,039		35,051		6.12		2,230,598		35,299		6.30		2,071,613		31,783		6.10
Noninterest-earning assets	85,218						88,747						86,874
Total assets	$	2,363,257					$	2,319,345					$	2,158,487

Interest-bearing liabilities:
Money market deposits and others	$	335,197	$	3,100	3.68	%	$	343,429	$	3,601	4.17	%	$	377,304	$	3,993	4.20	%
Time deposits	1,151,112		14,082		4.87		1,127,078		14,320		5.05		866,142		10,134		4.64
Total interest-bearing deposits	1,486,309		17,182		4.60		1,470,507		17,921		4.85		1,243,446		14,127		4.51
Borrowings	86,525		940		4.32		80,326		872		4.32		118,764		1,426		4.76
Total interest-bearing liabilities	1,572,834		18,122		4.58		1,550,833		18,793		4.82		1,362,210		15,553		4.53
Noninterest-bearing liabilities:
Noninterest-bearing deposits	543,546						528,126						569,965
Other noninterest-bearing liabilities	42,925						41,892						41,312
Total noninterest-bearing liabilities	586,471						570,018						611,277
Shareholders’ equity	203,952						198,494						185,000
Total liabilities and shareholders’ equity	$	2,363,257					2,319,345						2,158,487

Net interest income / interest rate spreads			$	16,929	1.54	%			$	16,506	1.48	%			$	16,230	1.57	%
Net interest margin					2.96	%					2.95	%					3.12	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	2,029,855	$	17,182	3.37	%	$	1,998,633	$	17,921	3.57	%	$	1,813,411	$	14,127	3.09	%
Total funding liabilities / cost of funds	2,116,380		18,122		3.41		2,078,959		18,793		3.60		1,932,175		15,553		3.19

(1)Annualized.

(2)Includes loans held for sale.



	For the Twelve Months Ended
	4Q2024						4Q2023
($ in thousands)	Average Balance		Interest and Fees		Yield/ Rate		Average Balance		Interest and Fees		Yield/ Rate
Interest-earning assets:
Interest-bearing deposits in other banks	$	109,579	$	5,766	5.26	%	$	78,676	$	4,040	5.14	%
Federal funds sold and other investments	16,371		1,266		7.74		14,963		1,031		6.89
Available-for-sale debt securities, at fair value	194,969		6,227		3.19		202,167		6,131		3.03
CRE loans	929,890		56,883		6.12		857,124		48,312		5.64
SBA loans	263,442		27,978		10.62		260,507		28,514		10.95
C&I loans	178,533		13,765		7.71		119,135		9,189		7.71
Home mortgage loans	504,030		25,648		5.09		507,125		24,384		4.81
Consumer & other loans	835		87		10.32		987		64		6.51
Loans(1)	1,876,730		124,361		6.63		1,744,878		110,463		6.33
Total interest-earning assets	2,197,649		137,620		6.26		2,040,684		121,665		5.96
Noninterest-earning assets	87,745						84,757
Total assets	$	2,285,394					$	2,125,441

Interest-bearing liabilities:
Money market deposits and others	$	346,104	$	14,135	4.08	%	$	374,116	$	13,830	3.70	%
Time deposits	1,084,107		53,986		4.98		841,804		35,605		4.23
Total interest-bearing deposits	1,430,211		68,121		4.76		1,215,920		49,435		4.07
Borrowings	88,186		3,891		4.41		77,114		3,543		4.59
Total interest-bearing liabilities	1,518,397		72,012		4.74		1,293,034		52,978		4.10
Noninterest-bearing liabilities:
Noninterest-bearing deposits	528,877						613,797
Other noninterest-bearing liabilities	40,839						35,377
Total noninterest-bearing liabilities	569,716						649,174
Shareholders’ equity	197,281						183,233
Total liabilities and shareholders’ equity	$	2,285,394					2,125,441

Net interest income / interest rate spreads			$	65,608	1.52	%			$	68,687	1.86	%
Net interest margin					2.99	%					3.37	%

Cost of deposits & cost of funds:
Total deposits / cost of deposits	$	1,959,088	$	68,121	3.48	%	1,829,717		$	49,435	2.70	%
Total funding liabilities / cost of funds	2,047,274		72,012		3.52		1,906,831		52,978		2.78

(1)Includes loans held for sale.

Exhibit 99.2

OP Bancorp Declares Quarterly Cash Dividend of $0.12 per Share

LOS ANGELES, January 23, 2025 — OP Bancorp (the “Company”) (NASDAQ: OPBK), the holding company of Open Bank (the “Bank”), announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per share of its common stock. The dividend is payable on or about February 20, 2025 to all shareholders of record as of the close of business on February 6, 2025.

About OP Bancorp

OP Bancorp, the holding company for Open Bank (the “Bank”), is a California corporation whose common stock is quoted on the Nasdaq Global Market under the ticker symbol, “OPBK.” The Bank is engaged in the general commercial banking business in Los Angeles, Orange, and Santa Clara Counties in California, the Dallas metropolitan area in Texas, and Clark County in Nevada and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on Korean and other ethnic minority communities. The Bank currently operates with eleven full service branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Cerritos, Gardena, Buena Park, and Santa Clara, California, Carrollton, Texas, and Las Vegas, Nevada. The Bank also has five loan production offices in Pleasanton, California, Atlanta, Georgia, Aurora, Colorado, Lynnwood, Washington, and Fairfax, Virginia. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank in October 2010. Its headquarters is located at 1000 Wilshire Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.com Member FDIC, Equal Housing Lender.

Contact

Investor Relations

OP Bancorp

Christine Oh

EVP & CFO

213.892.1192

Christine.oh@myopenbank.com

2024 Fourth Quarter Earnings Presentation January 23, 2024

Certain matters set forth herein constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including forward- looking statements relating to the Company’s current business plans and expectations regarding future operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to: the effects of substantial fluctuations in, and continuing elevated levels of, interest rates on our borrowers’ ability to perform in accordance with the terms of their loans and on our deposit customers’ expectation for higher rates on deposit products; cybersecurity risks, including the potential for the occurrence of successful cyberattacks and our ability to prevent and to mitigate the harms resulting from any such attacks; infrastructure risks and similar circumstances that affect our and our customers’ ability to communicate and to engage in routine online banking activities; business and economic conditions, particularly those affecting the financial services industry and our primary market areas; risks of international conflict, terrorism, civil unrest and domestic instability; the continuing effects of inflation and monetary policies, particularly those relating to the decisions and indicators of intent expressed by the Federal Reserve Open Markets Committee, as those circumstances impact our operations and our current and prospective borrowers and depositors; our ability to balance deposit liabilities and liquidity sources (including our ability to reprice those instruments and balancing our borrowings and investments to keep pace with changing market conditions) so as to meet current and expected withdrawals while promoting strong earning capacity; our ability to manage our credit risk successfully and to assess, adjust and monitor the sufficiency of our allowance for credit losses; factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers, the success of construction projects that we finance, including any loans acquired in acquisition transactions; the impacts of credit quality on our earnings and the related effects of increases to the reserve on our net income; our ability effectively to execute our strategic plan and manage our growth; interest rate fluctuations, which could have an adverse effect on our profitability; external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; continued or increasing competition from other banks and from credit unions and non-bank financial services companies, many of which are subject to less restrictive or less costly regulations than we are; challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; practical and regulatory constraints on the ability of Open Bank to pay dividends to us; increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; a failure in the internal controls we have implemented to address the risks inherent to the business of banking; including internal controls that affect the reliability of our publicly reported financial statements; inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance, particularly with respect to the effects of predictions of future economic conditions as those circumstances affect our estimates for the adequacy of our allowance for credit losses and the related provision expense; changes in our management personnel or our inability to retain motivate and hire qualified management personnel; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; risks related to potential acquisitions; political developments, uncertainties or instability, catastrophic events, or natural disasters, such as earthquakes, fires, drought, pandemic diseases (such as the coronavirus) or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; incremental costs and obligations associated with operating as a public company; the impact of any claims or legal actions to which we may be subject, including any effect on our reputation; compliance with governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities and tax matters, and our ability to maintain licenses required in connection with commercial mortgage origination, sale and servicing operations; changes in federal tax law or policy; and our ability the manage the foregoing and other factors set forth in the Company’s public reports. We describe these and other risks that could affect our results in Item 1A. “Risk Factors,” of our latest Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings with the Securities and Exchange Commission. Cautionary Note Regarding Forward-Looking Statements 2

4Q-2024 Highlights vs 3Q-2024 3 (1) Annualized. (2) Excludes the guaranteed portion of SBA loans that are in liquidation. (3) Includes special mention, substandard, doubtful, and loss categories. Net Income $5.0M Earnings & Profitability Balance Sheet Growth Credit Quality Capital Adequacy • Net income of $5.00 million, compared to $5.44 million • Diluted earnings per share of $0.33, compared to $0.36 • ROAA(1) and ROAE(1) of 0.84% and 9.75%, compared to 0.94% and 10.95%, respectively • Net interest margin of 2.96%, compared to 2.95% • Efficiency ratio of 61.52%, compared to 61.31% • Total assets of $2.37 billion, a 0.9% decrease compared to $2.39 billion • Gross loans of $1.96 billion, a 1.3% increase compared to $1.93 billion • Total deposits of $2.03 billion, a 1.8% decrease compared to $2.06 billion • Net loan charge-offs(1) to average gross loans of 0.00%, compared to 0.01% • Nonperforming loans(2) to gross loans of 0.40%, compared to 0.19%. • Criticized loans(2) (3) to gross loans of 1.00%, compared to 0.85% • Remained well-capitalized with a Common Equity Tier 1 (“CET1”) ratio of 11.35% • Book value per common share increased to $13.83, compared to $13.75 • Paid quarterly cash dividend of $0.12 per share for the periods Diluted EPS $0.33 ROAA 0.84% ROAE 9.75% NIM 2.96% Efficiency 61.52%

Balance Sheet Trend 4 Gross Loans ($mm)Total Assets ($mm) Total Equity ($mm) & Book Value Per Share ($)Total Deposits ($mm)

Loan Trend 5 Loan Originations ($mm)Loan Composition ($mm) Loan Yields (%) Commercial Real Estate Concentration (%)

Loan by Interest Rate Type 6 Hybrid Loan Repricing Schedule ($mm)Composition by Interest Rate Type (%) Contractual Rates by Interest Rate Type (%) Loan Maturity Schedule ($mm)

Gross Loans Diversification with Growth 7

* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. Commercial Real Estate Portfolio 8 CRE* Portfolio by Property TypeCRE* Portfolio by Collateral Type

* Based on Call Report definitions, which includes real estate loans and SBA real estate loans. ** Excludes SBA loans and USDA loans. Commercial Real Estate Portfolio 9 CRE Portfolio ** by Loan-to-Value Ratio (LTV)CRE Portfolio * by Location * CRE Weighted Average LTV: 48.8%

Home Loan Portfolio 10 Home Loan Portfolio by LTVHome Loan Portfolio by Location Home Loan Portfolio by Occupancy Type

* Includes $1.8 million in USDA loans. SBA Loans 11 SBA Portfolio* by IndustrySBA Portfolio* by Location

* Includes $1.8 million in USDA loans. ** Includes $1.8 million in USDA loans but excludes $18.6 million in SBA C&I loans. SBA Loans 12 SBA Portfolio* by Collateral TypeSBA Portfolio** by LTV

Deposit Trend 13 Noninterest Bearing Deposits ($mm)Deposit Composition ($mm) Cost of Deposits (%) CD Maturity Schedule ($mm)

Earnings & Profitability 14 Noninterest Income ($mm)Net Interest Income ($mm) & Net Interest Margin (%) Interest Income & Interest Expense ($mm) Noninterest Income Components ($mm) * Ratios for interest income & interest expense are percentages of average assets and are annualized.

Earnings & Profitability 15 Efficiency Ratio (%)Noninterest Expense ($mm) Noninterest Expense Components ($mm) Efficiency Ratio Components (%) * Ratios for Efficiency Ratio Components are percentages of average assets and are annualized.

Earnings & Profitability 16 Pre-Provision Net Revenue ($mm)Provision for Loan Losses ($mm) Net Income ($mm) & Diluted EPS ($) Return on Assets & Return on Equity (%)

Source: Target Fed Funds Rate per Federal Open Market Committee guidance. Net Interest Margin Trend 17

Credit Quality 18 Criticized Loans ($mm)Nonperforming Loans ($mm) Net Charge-Offs ($mm)Allowance for Credit Losses** ($mm) * Exclude the guaranteed portion of SBA loans that are in liquidation. ** ACL was calculated under the CECL methodology in 2023; prior periods were calculated under the incurred loss methodology.

Liquidity & Capital 19 Total Liquidity ($mm)On Balance Sheet Liquidity ($mm) Tier 1 Leverage ($mm) Total Risk Based Capital ($mm)

Non-GAAP Reconciliation 20 Pre-Provision Net Revenue ($ in thousands) 4Q-24 3Q-24 2Q-24 1Q-24 4Q-23 Interest income 35,051$ 35,299$ 34,357$ 32,913$ 31,783$ Interest expense 18,122 18,794 18,162 16,934 15,553 Net interest income 16,929 16,506 16,195 15,979 16,230 Noninterest income 4,417 4,241 4,183 3,586 3,680 Noninterest expense 13,133 12,720 12,189 12,157 11,983 Pre-Provision Net Revenue (a) 8,213$ 8,026$ 8,189$ 7,408$ 7,927$ Reconciliation to Net Income: (Reversal of) provision for loan losses (b) 1,547 448 617 145 630 Provision for income taxes (c) 1,695 2,142 2,136 2,037 2,125 Net income (a) - (b) - (c) 4,971$ 5,436$ 5,436$ 5,226$ 5,172$ For the Three Months Ended Pre-provision net revenue removes provision for loan losses and income tax expense. Management believes that this non-GAAP measure, when taken together with the corresponding GAAP financial measures (as applicable), provides meaningful supplemental information regarding our performance. This non-GAAP financial measure also facilitates a comparison of our performance to prior periods.

Cover	Jan. 23, 2025
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 23, 2025
Entity Registrant Name	OP BANCORP
Entity Incorporation, State or Country Code	CA
Entity File Number	001-38437
Entity Tax Identification Number	81-3114676
Entity Address, Address Line One	1000 Wilshire Blvd
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90017
City Area Code	213
Local Phone Number	892-9999
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	OPBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001722010
Amendment Flag	false